Bank of Nova Scotia v. Hellenic Mutual War Risks Association Ltd. (The Good Luck) - Court of Appeal (May, Ralph Gibson & Bingham L.JJ.) - 22 March 1989

War risks insurance - Insurers undertake to inform vessel’s mortgagee bank if insurance ceased - Insurers aware that shipowner was sending vessels into additional premium and prohibited areas without giving notice - Whether insurers under duty to inform vessel’s mortgagee bank of shipowner’s activities

The vessel Good Luck was entered in the Hellenic Mutual War Risks Association (Bermuda) Ltd. which was managed by Thomas R. Miller & Son. The vessel was mortgaged to the plaintiff bank. The club were given notification of assignment and, in a letter of undertaking dated 25 June 1981, undertook to inform the bank if the insurance ceased.